Estimates for Expenditures for 2011/ /14 Financial Years for Local Councils
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1 Estimates for Expenditures for 2011/ /14 Financial Years for Local Councils
2 Local Councils 1.0 Introduction Government of Malawi adopted the Decentralisation Policy in The enactment of the Local Government Act of 1998 provided the legal framework for implementation of the Policy. Implementation of the Decentralisation Policy entails the transfer of some functions from Central Government to the Local Authorities. Effective from the 2005/2006 fiscal year, Government started the process of devolving sector ORT budgets to the Local Authorities with three (3) sectors of Health, Education and Agriculture at a total budget of MK3 billion. The 2011/2012 budget therefore marks the seventh anniversary of the Fiscal Decentralisation of ORT budgets to Local Authorities. The number of devolved sector budgets has moved from three (3) in 2005/2006 to fourteen in the 2011/2012 Estimates. The devolved sector budget has moved from MK3 billion in 2005/2006 to MK16 billion in the 2011/2012 Estimates. This represents a movement of 433% over the period. Government s commitment to the Fiscal Decentralisation reform process has been well demonstrated. 2.0 The Local Authority Outlook The 2011/2012 total Central Government fiscal transfer estimates are at MK16 billion, representing an increase of 21% over the approved budget estimates. The Central Government fiscal transfer estimates are made up of the General Resource Fund at MK1.1 billion, Devolved Sector Funds at MK13.7 billion, the Constituency Development Fund at MK772 million and the City Council Infrastructure Development Fund at MK360 million. Page 382
3 The overall 2011/2012 Central Government fiscal transfers budget outlook is as tabulated below: Table 2a: Central Government transfers to Local Councils by Sector Sector Approved Revised 2011/2012 Estimates Percentage Movement, 2011/12 vs. 2010/ / /2014 Health 9, , , % 10, , Education 1, , , % 5, , Of which additional for Teaching and Learning Materials , , Agriculture Trade Water Gender % Environment % Forestry % Housing Fisheries Labour NRB Immigration Irrigation General Resource Fund , % 1, , CDF % Infrastructure Fund Total 13, , , % 20, , Page 383
4 Table 2b: Central Government transfers to Local Councils by Council Council Approved Revised 2011/2012 Estimates 2012/ /2014 Blantyre City Council Lilongwe City Council Mzuzu City Council Zomba City Council Kasungu Municipality Council Luchenza Municipality Council Balaka District Council Blantyre District Council Chikwawa District Council Chiradzulu District Council Chitipa District Council Dedza District Council Dowa District Council Karonga District Council Kasungu District Council Likoma District Council Lilongwe District Council 1, , , , , Machinga District Council Mangochi District Council Mchinji District Council M'mbelwa District Council Mulanje District Council Mwanza District Council Neno District Council Nkhata Bay District Council Nkhota Kota District Council Nsanje District Council Ntcheu District Council Ntchisi District Council Phalombe District Council Rumphi District Council Salima District Council Thyolo District Council Zomba District Council Additional Teaching and Learning Materials - - 2, , Total Local Councils 13, , , , , Page 384
5 Local Authorities have also planned to collect a total of MK6 billion in 2011/12 from their locally generated revenue sources which shall complement the Central Government transfers budget financing. In addition, the Local Development Fund will receive approximately K4.9 billion which will support the Councils in various Development Projects. 3.0 Planned Outputs for 2011/2012 The 2011/2012 Local Authority budgets have been aligned to the Malawi Growth and Development Strategy II. In line with the Decentralisation Policy objectives, the budget integrates devolved Government agencies at the District and local levels into one administrative unit for better service delivery and socio-economic development at the local level. Looking at the Fiscal Transfer estimates for Local Authorities, the sectors of Health, Education and Agriculture have the largest allocation of the total Local Authority estimates at 62% and 17% respectively. The Agriculture sector has an allocation of MK517 million which is quite significant. This trend is in tandem with Central Government priorities where the National has allocated substantial resources to the Health, Education and Agriculture sectors. Correspondingly, Local Authorities have prioritised implementation of Health, Education and Agriculture sector related outputs as follows: 3.1 Health Sector Under the Health Sector, Local Authorities have prioritised the provision of drugs and medical supplies in all District Hospitals and Health facilities with MK3.5 billion, representing 35% of the total ORT budget being set for the purpose. Other programmes that have been planned for implementation by Local Authorities under the Health Sector include the following: i. Improved access to the Essential Health Care Package by rural communities; ii. Provision of supplementary feeding to malnourished, pregnant, lactating mothers and under five children; Page 385
6 iii. iv. Provision of environmental, curative and preventive health services; and Rehabilitation and maintenance of health facilities and equipment; 3.2 Education Sector Local Authorities have prioritised improved management and equitable access to basic education at all levels through provision of a condusive teaching and learning environment. To attain a condusive teaching and learning environment, Local Authorities have provided for a sum of MK460 million, representing 17% of the sector s total ORT budget, for maintenance of classroom blocks. Local Authorities shall also aim at attainment of quality education through enhanced Teacher Advisory Service and double shifting in schools with high Teacher: Pupil ratio. Correspondingly, Local Authorities have provided for MK460 million and MK231 million for Teacher Advisory Services and Teacher Double Shifting respectively. In line with the Decentralisation objective of capacitating local communities in the decision making process, Local Authorities shall empower Primary School Management Committees in the determination and acquisition of basic Teaching and Learning Materials through the Direct Support to Schools and Primary School Improvement Programmes provided for within their ORT budget at a total estimate of MK400 million. Local Authorities shall further provide an integrated learning approach to pupils with special needs. 3.3 Agriculture Sector Under the Agriculture Sector, Local Authorities shall focus on increased agriculture productivity and promotion of food security. Local Authorities shall implement programmes under Extension Services, Land Resource Management and Animal and Livestock Management. Under Extension Services, Local Authorities shall conduct training of farmers in modern farming technologies and shall facilitate establishment of farmer cooperatives. Under Land Resource Management, Local Authorities shall train farmers on low cost soil fertility management techniques while under Animal and Livestock Management Local Authorities shall train farmers in dairy health management and shall provide vaccination services to livestock. Page 386
7 Other sectors Under the other devolved sectors, Local Authorities shall implement activities aimed at achieving the following outcomes: i. Improved community participation in policy formulation and implementation; ii. iii. iv. Mitigation of HIV/AIDS prevalence and impact; Sustainable use and management of forest resources; Improved access to sustainable water supply; v. Enhanced database of births, adults and deaths, vi. Improved labour relations in the work place and eradication of child trafficking and exploitation; vii. viii. Improved fish farming and aquaculture; and Vetting of Malawi Passport applications. Local Authorities shall further facilitate the implementation of short to medium term intervention projects through the Constituency Development Fund which has been revised from MK3 million to MK4 million per Constituency. The City Councils of Zomba, Mzuzu, Blantyre and Lilongwe shall further undertake road infrastructure network projects and other infrastructure projects through the City Infrastructure Development Fund with allocations of MK98 million each for Blantyre, Lilongwe and Mzuzu City Councils and MK65 million for Zomba City Council. 4.0 Conclusion The 2011/2012 budget places Local Authorities in a strong position to deliver pro-poor basic services as funding for some of the key sectors continues to be directly channeled to them. This will go a long way in enhancing implementation of Government s Decentralisation policy. Page 387
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